News America was accused in a 2009 lawsuit [4] of hacking into the computers of one of its competitors, Floorgraphics Inc., to steal detailed information about their sales, clients and finances. Floorgraphics said they first realized they were being hacked in 2004, when they discovered intrusions from computers with IP addresses registered to News America. The company claimed that their information was accessed at least 11 times over four months and that they started losing important clients to News America shortly afterward, leading to a round of layoffs.

News America and Floorgraphics Inc. both provide services for clients to promote their products in grocery stores.

According to court testimony [5] from one of the founders of Floorgraphics, George Rebh, News America CEO Paul Carlucci expressed interest in buying the company years before the hacking incident. Carlucci then threatened them after Floorgraphics declined. From the Guardian: [6]

According to transcripts of a trial that took place 10 years after the lunch, the Rebh brothers were astonished. No, they replied, they only wanted to talk about working together and had no intention of selling. George Rebh told the jury that Carlucci then said: "From now on, consider us your competitor and understand this: if you ever get into any of our businesses, I will destroy you. I work for a man who wants it all, and doesn't understand anybody telling him he can't have it all."

News Corp later denied that Carlucci had said this.

Has News America been caught up in any other similar lawsuits?

News America was involved in lawsuits with two other competitors, Valassis Communications and Insignia Systems, who accused News America of engaging in predatory business practices and violating U.S. antitrust law. These cases didn't involve hacking. News Corp settled with Valassis for $500 million [7] and with Insignia for $125 million [8].

What happened to the guy who was running News America at the time of this alleged hacking?

Paul Carlucci is now the publisher of the New York Post and is still the CEO of News America.

What does this have to do with the phone hacking scandal in the U.K.?

Nothing so far, but journalists are latching onto it as a window into News Corp's overall culture. The New York Times' Carr has pointed out that there are interesting parallels in terms of how News Corp moved quickly to settle out of court, ensuring that evidence remains sealed and plaintiffs can't talk.

So, wait; how many investigations into News Corp are going on in the United States?

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